...The crisis situation with Toyota started when leaders made a huge mistake and ignored the warning stage where no serious actions were initiated by management to take the appropriate steps. “The committee represented just one of three Congressional panels investigating the 2009-2010 recall of Toyota vehicles related to problems of sudden acceleration and the company’s delay in responding to the crisis” (Greto, Schotter, & Teagarden, 2010). This has led to the major recall started in late 2007 leading to many deaths by early 2010. Denial of malfunctions and mismanagement has led to this crisis that put Toyota’s brand in a chronic stage. In the case of Toyota, even though media brought high crises alert to the consumer, “Corporate leaders failed to be transparent and Toyota's corporate leadership team failed to effectively deal with the acute crisis stage and dissipate the enormous negative results that this stage brought into focus” (Heller, V. & Darling, J. (2011). Based on the strategic, structural, and cultural challenges, there are many apparent causes of Toyota's accelerator recall crisis. First, Toyota was desperate to drive growth globally; therefore, the key driver to such potential growth is to lower prices. “The nonfamily management was determined to accelerate Toyota’s growth with an aggressive globalization strategy” (Greto et al, 2010). Toyota’s cutting cost was the cause of installing poor quality parts and products. Secondly, in order to manufacture cheaper...
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...PEPSI COLA CRISIS Yeşim Ekici, M.Sc Bahçeşehir University CONTENTS Brief History of Pepsi Crisis Crisis Management Analysis and Comments References CONTENTS Brief History of Pepsi Crisis Crisis Management Analysis and Comments Brief History of PEPSI 1891- 1935: faced bankruptcy twice 1898: becomes known as Pepsi Cola, formulated Pepsi-Cola 1941: First signs of success Listed on New York Stock Exchange 1964: formulated Diet Pepsi 1965: PepsiCo, Inc. was established through the merger of Pepsi-Cola and Frito-Lays Named one of the world’s top beverage companies CONTENTS Brief History of Pepsi Crisis Crisis Management Analysis and Comments CONTENTS Brief History of Pepsi Crisis Timeline of Crisis Crisis Management Analysis and Comments CRISIS PepsiCo was entering peak sales season (Memorial Day to Labor Day) June 9, 1993: Syringe found in Diet Pepsi can (Tacoma, Washington) Hypodermic syringes in cans which cause HIV/AIDS When the crisis hit, days later on: more than 50 new reports in more than 20 states with objects including: Syringes, a wood screw, a bullet, a crack cocaine vial and a broken sew needle TIMELINE OF CRISIS *2 more complaints reported 1 from Los Angeles; 1 from Pennyslvania *First complaint reported in Tacoma , Washington JUNE 9 JUNE 10 *FDA (US Food and Drug Administration) issues 5 states alert advising consumers to inspect their sodas by pouring JUNE 13 JUNE 14 *Multiple complaints reported from...
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...1. Introduction The Global financial and economic crisis in 2007 and a liquidity crisis of the world's leading banks force us to reconsider the debt relations. Credit boom accompanied by rising debt payments, could not continue persistently. Debt servicing was possible only with high incomes or assets value of the debtor, and as soon as the growth of income or assets stopped, the debtors have faced problems in servicing their debts: in spite of the decline in income and assets value of debt borrowers’ debt during the crisis did not reduce. As a result, the debtors faced decoupling of debts from assets. According to Minsky decoupling between firms’ debt and assets, or the debt crisis caused by the cyclical nature of economic development: at...
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...CRISIS COMMUNICATION AND THE CASE STUDY OF MISSING MALAYSIA AIRLINES FLIGHT MH370 I. Literature review In a ‘vulnerable’ society that has been easily affected by many different types of crises such as natural and man-made disasters, in disregard of where you live and what you do, no community or organization is immune from crisis. In order to provide clear definitions and deeper understanding crises of all types, scholars have developed theories to handle these events. A wide range of crisis fields are studied including psychology (Morgan et al., 2002), sociology (Clarke & Chess, 2008) or political perspective (Birkland, 2006). In addition, other research involved communicating in crisis (Reynolds, 2002). All of these disciplines, even different, combine to build a theoretical background on various approaches to crisis communication and contribute to establish crisis response guidelines for organizations. Among the prominent theories on crisis communication, the Situational Crisis Communication Theory generates a link between Attribution Theory firstly built by Fritz Heider in the early part of the 20th century which addresses the processes by which individuals explain the causes of behavior and events and crisis response strategies which represent what an organization does and says after a crisis. To protect reputation, it is crucial for the organization to consist the responsibility acceptance of the crisis response with the stakeholder attributions. Coombs (2006)...
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...It sounds as though Fred is depressed, feeling sorry for himself and may be going “through a midlife crisis” development stage. I imagine that he has lost his confidence because he had been looked over for promotions in the past and competing with the younger generation. I think I would focus on 1) identifying this as a barrier (I need him to identify his for himself) 2) identify his strengths 3) pulling out a career assessment to reevaluate his options. Which would lead to does how his transferrable skills, hobbies lead to opening doors options for possibility redefining himself. I would use this opportunity to do psychoeducation and identify the development stage of life has in now per Broderick & Blewitt. This week has been emotional,...
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...TECNOLÓGICO DE MONTERREY | THUNDERBIRD Production Operation Management TOYOTA: THE ACCELERATOR CRISIS Study Case Report | | 1. What were the drivers of Toyota´s accelerators crisis? Why was Toyota facing a recall crisis? The drivers of Toyota crisis were Strategic, structural and cultural issues. At the strategic level, the cost reduction strategy added with the increasing of the output volume strategy caused a decrease in quality. Furthermore, the structure of Toyota (HQs in Japan and not in the U.S) impacted Toyota’s response to customer’s claims, taking a long time to address Toyota consumer’s concerns, and in fact was one of the most criticized issues during the crisis. In other words, the company took a considerable time before recalling units that meant life losses and significant economic impacts. At the cultural managerial level, there were difficulties driven by how Japanese address the situation vs. how Americans deal with the problems. The company lost its original philosophy due to different cultural orientations between Japanese headquarters and North American subsidiaries. The fact that Toyota was recovering from its last unit’s recall (due to motors leaking oil) plus the beginning of the global financial crisis, ended up yielding a deviation of the original long term plan to look after the U.S subsidiary´s financial performance, triggering a swap in the three main pillars of Toyota (Safety, Quality and Volume). 2. Michael...
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...Block 5 Crisis Management Week 5 Overview Lesson 1 | Homework | Lesson 2 | Homework | * Doc 5.1 Crisis Management Lesson 1 – Vocabulary/ Listening/Speaking * ML Vocabulary P. 105 | Doc. 5.2 Vocabulary HW Crisis Management Business BriefDoc. 5.3 Listening HW Managing Crises | * Doc 5.4 Crisis Management Lesson 1 – Reading/Speaking * ML Reading P. 107 * ML P. 108 Language Review – Conditionals * Doc 5.5 Cases for Discussion/ Doc 5.6 Crisis Management Scenarios for Discussion | Crisis Management Extra ReadingsICE forum follow up task: Language Review C Discussion | Week 6 Overview Lesson 1 | Homework | Lesson 2 | Homework | * Introduction to Coursework 3 and Portfolio – hand out Student Guidelines for CW3 * Doc.6.1 Evaluation: Introduction to Evaluation – Criteria – Evaluation of SourcesNote: Ss to prepare a seminar for Lesson 2 in Week 8 where they have to introduce their topic, title and sources, and explain why they were chosen (how many, different types, etc.) | 1) Ss do web search on crises, choose topic and write a title for assignment2) Download from ICE & read doc on ‘Research Sources’3) Preview Doc 6.2-A - vocabulary for Titan case study | * Doc 6.2-S Titan Case Study (based on old ML)OR * Doc 6.2-S - Speed Reading Comprehension Questions – ‘Keeping your client relationship afloat’ (based on old ML – see ppt in relevant folder). | Students choose sources and begin note-taking doc for their sourcesSelf –Study:1) Download &...
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...1. In a narrative format, summarize the key facts and issues of the case. The key facts of this case include Imus’ performance and history as a 28-year veteran shock-jock, his employment by CBS and MSNBC, his controversial and off-color comments against a girl’s basketball team, and CBS’ response to the matter. The issues include the remarks made by Imus’, was the response by CBS timely and appropriate and what could have been improved upon in preparation and execution of their crisis management approach. Also, was CBS strategic in their execution of their damage control? Should Imus have continually remained in the media empathetically apologizing then saying he had apologized enough? 2. Update the information in the case by researching it on the Internet. Focus your response on the specific issues in the case. The case study provided by the text provides limited information in the summary. Although it includes the incident, a little history of Imus and CBS’ response, it is vague as to how the matter became so public and why CBS would severe a $40 million contract with one of the nation’s most revenue-producing jock (Press, 2007). Further research reveals the history of Imus’ profession as a highly sought after shock jock, the efforts behind his firing, CBS’ reaction, responses and their inadvertent handling of the matter. The employment contract was extended to Imus by CBS in 2006 because he was a shock-jock of the nation and because his controversy and...
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...financial stability of the organization. This crisis involves a recent explosion at one of the plants at the XYZ Corporation and will require the development of an external relations strategy in order to rebuild the corporate image of the organization. The goal of the XYZ Corporation will be to develop a communications and external relations strategy to explain the events that led up to the explosion at the plant and explains the steps that will be taken to fix the problem. The external relations strategy will coordinate the dissemination of information and effectively manage the crisis. An effective communication channel is needed to establish positive feedback throughout the organization. So then, a team is created specifically to implement these channels. This communications team will be responsible for assessing the situation, developing and implementing the communication plan and following up on the success of the plan. The communication team will develop a plan of action that will result in a more positive corporate image. This team will consist of: top executives from the XYZ Corporation, a PR person will be identified and the communication nodes will be determined. The PR will be used to establish the credibility of the corporation and to persuade the public to take a more positive view of the corporation. The team will also come up with the steps that it will take to repair the image of the corporation. Successful crisis management depends largely on developing a planned...
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...Model of Crisis Intervention ABC Model of Crisis Intervention Introduction Every person ultimately experiences crisis moments that may differ in content but tend have specific shared characteristics. Usually, crisis entails loss, threat, as well as the unexpected. There have been various theoretical techniques provided for assisting those functioning through crisis. Generally, the most effectual techniques tend to follow a short therapeutic model which stresses the episode isolated from other problems and seeks an action plan to mitigate the crisis. The ABC model provides a useful instrument to enhance the counseling procedure. “A” stands for basic attending skills, “B” stands for the identification of problem and healing intervention, while “C” represents coping skills (Grice, 2010). This paper employs the ABC model to attend, indentify, intervene and assist in coping in Jones crisis. ABC Model of Crisis Intervention The case study involve a report from Mr. John who claims that his neighbor who they have been sharing coffee and chats has stayed for about two months without being seen outside the house. According to Mr. John, his neighbor Mr. Jones failed to turn up for their usual morning coffee in the neighboring restaurant, since his son started coming on daily basis to check on him. The last time when Mr. John saw him, Mr. Jones had bruise on his face and Mr. John feels that something is amiss. With this regard he decided to report the matter to crisis workers...
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...Discussion questions 1. Pick a recent news article that focuses on some international or global problem, and give examples of how and where states, markets, and societies interact and at times conflict with one another. How hard is it to determine the analytical boundaries between the state, market, and society in this case? ONU se reúne tras supuesto uso de armas químicas Los estados interactúan ya que son los encargados de mantener la seguridad de cada país, por eso acuden a las organizaciones que se ocupan de este tipo de asuntos. Los mercados pueden verse afectados por las consecuencias de este tipo de ataques y estos dos se implica la sociedad ya que es la afectada de lo que resulte esta situación. Es fácil distinguir los límites de cada parte en este tema ya que el que tiene la mayor responsabilidad es el estado. 2. Review the basic elements and features of the IPE approach: the three main theoretical perspectives, the four structures, the levels of analysis, and the types of power. Which ones do you feel you understand well and which ones need more work? Los niveles Individual y el de los estados son los más fáciles de comprender ya que se pueden estudiar sin tanto conflicto, pero el sistema internacional: el conflicto internacional a veces es causado por la naturaleza conflictiva del hombre. 3. Define and outline the major features of globalization. Explain the connection between economic liberal ideas and globalization. Which of the three IPE...
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...factors and the consequences are independent of any socio-geographical variables. A crisis is a crucial or decisive point or situation; an unstable condition as in political, social or economic affairs involving an impending abrupt or decisive change; a sudden change in the cause of a disease or fever toward either improvement or deterioration; an emotionally stressful event or traumatic change in a person’s life; a point in a story or drama when a conflict reaches its highest tension and must be resolved. Crises generally are about victims, perceived victims or people who are affected by what happened. When we are not sufficiently educated or informed about the new trends and best practices in Crisisology, there is predisposition that: 1. Faced with a crisis, we feel frightened, confused, angry and helpless; 2. Judgment may be affected, sometimes creating a tendency to consider ideas that would normally be dismissed; 3. Individual’s personality trait becomes exaggerated (for example, an anxious person becomes very anxious); 4. A siege mentality sets in with those in charge withdrawing, doing nothing, saying nothing and becoming inert; 5. The search begins for a scapegoat; 6. Instability sets in and decision makers may not adopt the latest opinions they have heard; and 7. Government or management turns defensive, declaring in reflex “everything is under control”. 8. A crisis presents real or potential negative outcomes for victims. A victim is anyone who...
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...Leadership challenges and strategies in post GFC world Name: insert ID no: insert Unit code and name: insert Lecturer: insert Due date:insert We move into 2014, the Chinese class of the cavalry, with the world economy in practically improved shape and advance signs of recuperation in lots major savings. Congealing apart some not surprising excitability as the Federal Reserve of US starts to cut down accessory monetary rules, market opinion has bettered (Taylor, 2011). We are experiencing good development in the US; Japan's rules appear to be bearing an impression, China's development stays rich, and Euro domain growth is demonstrating some signs of blaming up while the trusting system's constancy is bettering – though obviously I concern the wood once I say this. In issuing market savings, substantial advance has been arrived at in amending their receptivity and resiliency to commercialize fluctuations. Two chief problems lay beforehand for the global savings, and they are ace's business leadership discussed over in Sydney. G20 Finance government Ministers chaired by Australia's financial officer Joe Hockey need to accomplish development and create employment. They might well concur on a G20 development objective. Business leadership – by the B20 business leadership forum - can assist them formulate and attain their development schemes. The G20's designs to further private sector development will hopefully adjust to our aspects...
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...Moshladokombinat N 8. In 1992 it was privatised and registered as a private jointstock company under the name Ice-Fili. Its CEO is Anatoliy Vladimirovich Shamanov. He transitioned the company to a privatized for-profit firm after the dissolution of the Soviet Union in 1991. The transition was successful; it could hold its good market position and remains the largest Russian ice cream producer in the year 2002. All information about the company, the competitive environment and the political situation used in the following article are derived from the Harvard Business School Case Ice-Fili (Rukstad, Mattu, & Petinova, 2003). 2. External Analysis In this part it will be looked at the Russian ice cream industry. Therefore, an industry definition will be given. Its structure will be highlighted and from there on, the threats for Ice-Fili will be examined. 2.1 The Russian ice cream industry In the case of Ice-Fili we deal with the Russian ice cream industry. It concerns the production of frozen ice cream products from the raw material to the selling of the different sorts of ice. The original Russian ice cream consists only of natural ingredients. The people love its unique flavour that comes mainly from the high percentage of milk fat which makes it less sweet and more aerated than the western products. The Russian ice cream industry had to suffer from two economic shocks in the late 20 th century. The first was after the dissolution of the Soviet Union in 1991, when...
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...Mary Barra was struggling to keep the GM name in tact through this recall nightmare. She is credited for maintaining her cool as she continued to defend how GM was handling the recall and pledging to conduct an internal review of the company stating that GM would, “hold [themselves] accountable and improve our processes so our customers do not experience this again (CNN)." To support this promise, she appointed legal firms to conduct an internal investigation of the events leading up to the recall. In March of that same year, GM expanded its ignition switch recall after admitting to this being the core cause of the recall. The recall was now to include cars sold between 2008 and 2011 in the US. The death toll reached a total of 13 confirmed cases. It is apparent that GM did not feel the need to acknowledge the ignition switch issue until these deaths came to light. Why else would it take GM 10 years to issue a recall? Barra was stuck in a tough situation. She hired Ken Feinberg, a well-known attorney experienced in determining victim compensation, to address the issue. This shows that she was actively making an effort to alleviate the losses. To respond to the faulty vehicles, GM dealers began making repairs. GM advised customers to make appointments to repair their vehicles free of cost. In addition to the faulty ignition switch, GM found another ignition flaw with 2.6 million of the vehicles it had already recalled. Contrary to the delay in...
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